Why Purchase the Cover?
The ongoing and increasing importance of Top-Up Insurance continues to be highlighted annually by the Chairman of the Bar Mutual Indemnity Fund. Previous comments include that “statistics show that a large number of barristers are risking their future financial security by taking out inadequate professional indemnity insurance.”
Going on to say, “Although most claims remain small, in recent years there have been an increasing number of large claims where the potential exposure is significantly above the level of cover offered by BMIF…I predict that large claims against barristers are likely to increase over the coming years, particularly in the fall-out from the current financial crisis.”
“The real benefit of top-up insurance is that if you insure adequately, you should be able to face the risk of a claim, however unlikely, with the peace of mind that comes of knowing that you have sufficient insurance protection either to meet any claim, however unlikely, in full or at least to persuade any claimant not to pursue you beyond your limit of insurance. Commercial claimants are unlikely to have much pity on those whom they consider to be inadequately insured.”
There are numerous factors to consider when deciding what level of cover to buy. As the former manager of Bar Mutual, TLO’s Hugh Wodehouse, is extremely well-placed to provide barristers and their chambers with expert advice on considering and selecting the correct level of cover.